Britvic plc Interim Results – 20 May 2015
Britvic plc announces its interim results for the 28 weeks ended 12 April 2015. All comparisons quoted are on a
constant currency basis and are pre-exceptional and other items, unless otherwise stated.
Financial highlights:
 Continued strong earnings growth in challenging trading conditions
 Group revenue declined 0.7% to £650.3m, with volume and ARP marginally down
 Group EBITA increased 6.2% to £64.7m, underpinned by disciplined cost management
 Group EBITA margin improvement of 60bps on last year
 Half year adjusted EPS of 16.4p, an increase of 11.6% on last year
 Interim dividend of 6.7p (+9.8%), reflecting earnings growth and confidence in future prospects
 Reduction in adjusted net debt of £31.7m, leading to a 0.4x reduction in adjusted net debt:EBITDA ratio
 Full year EBIT guidance remains unchanged at £164m to £173m
Strategic highlights:
 New products launched in core markets, will benefit revenue from the second half of the year
 Fruit Shoot continued to make progress in the USA, with a new compound manufacturing process
established to improve supply chain efficiency
 Direct serve model established in the Netherlands to deliver long-term growth opportunities
 Continued delivery of strategic cost initiatives, enabling further investment behind international
expansion, marketing and innovation capability
28 weeks ended
12 April 2015
(13)
£m
28 weeks ended
13 April 2014
(13)
£m
% change
actual
exchange rate
% change
constant
(12)
exchange rate
650.3
670.7
(3.0)%
(0.7)%
Group EBITA
(6)
EBITA Margin
(7)
Group EBIT
(6)
64.7
9.9%
63.2
60.5
9.0%
59.0
6.9%
90bps
7.1%
6.2%
60bps
6.4%
Group Profit Before Tax
Group Profit After Tax
Group Profit After Tax, After
Exceptional And Other Items
51.0
39.0
45.3
34.0
12.6%
14.7%
11.4%
13.0%
37.9
27.5
37.8%
34.4%
16.4p
247.3
6.7p
14.5p
245.6
6.1p
13.1%
0.7%
9.8%
11.6%
-
(31.5)
(447.7)
2.2x
(30.8)
(479.4)
2.6x
(2.3)%
6.6%
(0.4)x
-
Group Revenue
(3)
(8)
Adjusted Earnings Per Share
Weighted Average No. of Shares
Interim Dividend Per Share
(9)
Underlying Free Cash Flow
(10)
Group Adjusted Net Debt
(11)
Adjusted Net Debt: EBITDA
The board has announced an interim dividend per share of 6.7p, up 9.8% on last year. This reflects the
board’s confidence in the future prospects of our business, the strong free cash flow generation and our
progressive dividend policy.
Simon Litherland, Chief Executive Officer, commented:
“Despite the challenging market conditions we have delivered double digit earnings growth, continued to
improve our margin and further reduced debt. Importantly we continued to increase A&P investment behind
our brands, our innovation and marketing capability and in our international business unit, to drive future
revenue and profit growth.
We have made significant progress executing our strategy which will continue to create sustainable value for
shareholders. Whilst we expect trading conditions to remain challenging, guidance for the current year is
unchanged.”
1
For further information please contact:
Investors:
Rupen Shah (PLC Finance and Investor Relations Director)
Steve Nightingale (Director of Investor Relations)
+44 (0) 1442 284330
+44 (0) 1442 284330
Media:
Susan Turner (Director of Corporate Affairs)
Ben Foster/Rosie Oddy (Pendomer communications)
+44 (0) 7808 098579
+44 (0) 2036 035220
There will be a live webcast of the presentation given today at 10:00am by Simon Litherland (Chief Executive
Officer) and John Gibney (Chief Financial Officer). The webcast will be available at http://ir.britvic.com/, with
a transcript available in due course.
Definitions
Key performance indicators
(1)
Volume is defined as number of litres sold, excluding factored brands sold by Counterpoint in
Ireland. No volume is recorded in respect of international concentrate sales.
(2)
ARP is defined as average revenue per litre sold, excluding factored brands and concentrate sales.
(3)
Group revenue is defined as sales achieved by the group net of price promotional investment and
retailer discounts.
(4)
Brand contribution is defined as revenue less material costs and all other marginal costs that
management considers to be directly attributable to the sale of a given product. Such costs include
brand specific advertising and promotion costs, raw materials, and marginal production and
distribution costs.
(5)
Brand contribution margin is a percentage measure calculated as brand contribution divided by
revenue. Each business unit’s performance is reported down to the brand contribution level.
(6)
Group EBITA is defined as operating profit before exceptional and other items and amortisation.
Only amortisation attributable to intangibles related to acquisitions is added back, in the period this is
£1.5m (2014: £1.5m as reported last year). EBITA margin is EBITA as a proportion of group
revenues.
(7)
Group EBIT is defined as operating profit before exceptional and other items. EBIT margin is EBIT
as a proportion of group revenues.
(8)
Adjusted earnings per share amounts are calculated by dividing adjusted earnings by the average
number of shares during the period. Adjusted earnings is defined as the profit/(loss) attributable to
ordinary equity shareholders before exceptional and other items adjusted for the adding back of
acquisition related amortisation. Average number of shares during the period is defined as the
weighted average number of ordinary shares outstanding during the period excluding any own
shares held by Britvic that are used to satisfy various employee share-based incentive programmes.
The weighted average number of ordinary shares in issue for adjusted earnings per share for the
period was 247.3m (2014: 245.6m).
(9)
Underlying free cash flow is defined as net cash flow excluding movements in borrowings, dividend
payments and exceptional and other items.
(10)
Group adjusted net debt is defined as group net debt, adding back the impact of derivatives hedging
the balance sheet debt.
(11)
Group EBITDA is defined as earnings before interest, tax, depreciation, amortisation, impairment,
profit or loss on disposal of tangible and intangible assets, and exceptional and other items.
Others
(12)
Where appropriate, comparisons are quoted using constant exchange rates. Constant currency
change removes the impact of exchange rate movements during the period by retranslating prior
year foreign currency denominated results of the group at current period exchange rates to aid
comparability.
(13)
All numbers in this announcement, other than where stated or included within the financial
statements, are disclosed before exceptional and other items.
2
Reconciliation from actual exchange rate to constant exchange rate
Group Revenue
Group EBIT
Group Profit Before Tax
Group Profit After Tax (PAT)
Group PAT, After Exceptional And Other Items
Group EBITA
Adjusted Earnings Per Share
2014 actual
exchange rate £m
Change
£m
2014 constant
exchange rate £m
670.7
59.0
45.3
34.0
27.5
60.5
14.5p
(15.6)
0.4
0.5
0.5
0.7
0.4
0.2p
655.1
59.4
45.8
34.5
28.2
60.9
14.7p
Basis of preparation
This financial information has been prepared in accordance with the Disclosure and Transparency Rules of
the Financial Services Authority and with the International Accounting Standard (IAS) 34 ‘Interim Financial
Reporting’ as adopted by the European Union.
Notes to editors
About Britvic
Britvic is one of the leading branded soft drinks businesses in Europe. The company leverages its own
leading brand portfolio including Robinsons, Tango, J 2O, Fruit Shoot, Teisseire and MiWadi with PepsiCo
brands such as Pepsi, 7UP and Mountain Dew which Britvic produces and sells in Great Britain (GB) and
Ireland under exclusive PepsiCo agreements.
Britvic is the largest supplier of branded still soft drinks in GB and the number two supplier of branded
carbonated soft drinks in GB. Britvic is an industry leader in the island of Ireland with brands such as MiWadi
and Ballygowan, and in France with brands such as Teisseire and Pressade. Britvic is growing its reach into
new territories through franchising, export and licensing. Britvic's management team has successfully
developed the business through a clear strategy of organic growth and international expansion based on
creating and building scale brands. Britvic is listed on the London Stock Exchange under the code BVIC and
is a constituent of the FTSE 250 index.
Cautionary note regarding forward-looking statements
This announcement includes statements that are forward-looking in nature. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the group to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Except as required by the Listing
Rules and applicable law, Britvic undertakes no obligation to update or change any forward-looking
statements to reflect events occurring after the date such statements are published.
Market data
GB take-home market data referred to in this announcement is supplied by Nielsen and runs to 11 April
2015. ROI grocery market data referred to in this announcement is supplied by Nielsen and runs to 22 March
2015. French market data is supplied by IRI and runs to 5 April 2015.
Next scheduled announcement
Britvic will publish its quarter three trading statement on 23 July 2015.
3
Chief Executive Officer’s Strategic Review
We have delivered continued strong earnings growth in the first half, despite the ongoing challenging trading
conditions. Revenue and volumes were marginally down, however profit after tax was up 13.0%, underpinned by
our cost savings initiatives and favourable raw material pricing. Importantly, we have continued to make good
progress against the strategy we first outlined two years ago and our vision to be the most dynamic, creative and
admired soft drinks company in the world. We remain focused on driving growth of our kids, family and adult brands
across the core business and internationally whilst leveraging the PepsiCo portfolio in GB and Ireland. We have
significantly increased investment in A&P, the international business unit and both our marketing and innovation
capability. We will start to see the benefit of our recent innovation launches in the second half of the year.
As we anticipated at the start of the year, the GB market was particularly challenging, with the food and beverage
sector experiencing price deflation. Against this backdrop, we have continued to invest in our carbonates and stills
brands. Pepsi Max remained the focus variant of the Pepsi brand and we launched a new Cherry flavour into the
range. 7UP was refreshed with a new pack design and marketing campaign, whilst a new look Tango has just
launched.
Our stills portfolio performance was not as strong as we had hoped, but we are optimistic for the future with our
recent innovation launches and brand initiatives. We launched our category leading French brand Teisseire in GB,
with a range of products for mixing with hot drinks and alcohol, as well as water. More recently we have
reinvigorated the Robinsons brand with improved formulations, new flavours and a striking new look and marketing
campaign. We also stopped selling the added sugar version of Robinsons as part of our ongoing commitment to
reduce average calories per serve across the portfolio. We are confident that this major investment in the
Robinsons brand, which followed the launch of Robinsons Squash’d last year, will help return Robinsons to growth.
J2O has also extended it’s appeal with the launch of a new lighter, sparkling variant called Spritz and a new limited
edition for the summer called Garden Rose. In addition work got underway at our Leeds factory to install a new
high speed and flexible PET line and additional warehousing to support our future growth plans. Construction has
begun at the site, and on completion will create approximately 45 new jobs.
In Ireland we have started to see signs of growth in the market after a number of years of decline reflecting the
challenging macro environment. The launch of MiWadi Zero, a stevia-based no calorie range is set to reinvigorate
the range whilst Club Zero is proving very popular with consumers. In France the Teisseire brand has continued to
benefit from the introduction of the new pump pack last year which is bringing additional households into the brand.
More recently we have introduced Teisseire “Mix & Go”, a highly-concentrated syrup in a convenient pack to
encourage consumption out of the home.
We continue to invest behind our international business. In the Netherlands we have terminated our current
distributor trading relationship and third party service agreement and have established an office in Amsterdam to
manage the relationship with retailers directly. This has started to deliver results with new listings such as Pathé,
the largest cinema chain in the Netherlands. In the USA in-market sales of Fruit Shoot single-serve have continued
to increase. Two years ago we were in 9 states and today we have national distribution. There is still significant
growth potential for single-serve, and we continue to work with PepsiCo and the independent bottlers to build the
brand for the long-term. A third production line with Buffalo Rock will provide multi-pack manufacturing capability.
We continue to evaluate the optimum route to market to access the scale grocery channel. Whilst there may be the
opportunity to list multi-pack in a small number of retailers in 2015, we now anticipate a broader roll-out in 2016, in
line with customer range reviews.
Sustainability is at the heart of our business and a key part of our strategy is to be trusted and respected in our
communities. We continued to make strong progress against our people and planet priorities and were delighted to
achieve a two star rating in the annual Business in the Community CR Index. Whilst we firmly believe that all our
drinks can be enjoyed as part of a balanced diet and healthy lifestyle, we continued to play an active role in helping
to address the health challenge. Since 2012, we have now removed over 18 billion calories from the UK soft drinks
category and we will continue to implement our broad strategy to reduce average calories per serve by 20% by
2020.
The future prospects of our business are positive and despite the tough consumer and retail backdrop we remain
confident in achieving full year profit within the guidance range we outlined at the start of the year. We have made
good progress on the delivery of our strategy and delivered increased shareholder returns in the first half, with an
interim dividend increase of 9.8%. We continue to invest significantly behind the business and the long-term drivers
of growth and have the plans in place to enable us to continue to create sustainable value for all of our
stakeholders.
Simon Litherland
Chief Executive Officer
4
Chief Financial Officer’s Review
The following is based on Britvic’s results for the 28 weeks ended 12 April 2015. A full list of definitions can
be found on page 2 of this document. All numbers quoted are on a constant currency basis and are preexceptional and other items, unless otherwise stated. The first half incorporates 28 weeks of fixed costs but
represents less than half of our expected revenue for the year and is a working capital high point for the
business ahead of the summer months.
Overview
In the period the group sold over 1 billion litres of soft drinks, a decline of 0.3% on the previous year. With
Average Realised Price (ARP) declining by 0.5%, the group’s revenue was down 0.7% compared to the first
half of 2014, on a constant currency basis.
The focus has remained on building sustainable profit and margin improvement. This year EBITA is up 6.2%
to £64.7m. EBITA margin has improved by 60bps this year and by 140bps over the last 2 years. We have
continued to invest in the international business unit, as well as marketing and innovation capability.
Alongside this A&P spend increased by nearly 15% as part of our long-term growth strategy to invest in the
equity of our brand portfolio.
GB stills
Volume (millions litres)
ARP per litre
Revenue
Brand contribution
Brand contribution margin
28 weeks ended
12 April 2015
£m
184.5
86.9p
160.3
76.2
47.5%
28 weeks ended
13 April 2014
£m
189.6
88.3p
167.4
82.9
49.5%
% change
actual
exchange rate
(2.7)
(1.6)
(4.2)
(8.1)
(200)bps
Stills performance in the first half of the year was disappointing with both volume and ARP falling, resulting
in a revenue decline of 4.2%. Whilst the stills category grew, this was primarily due to the continued growth
of plain water with double-digit increases in both volume and value. Excluding water the stills category
volume declined 1.5% whilst value declined 2.7%. Robinsons lost share in the very competitive squash
category to cheaper tertiary brands. J2O volume grew in the first half of the year, led by multipacks in the
grocery channel and supported by a strong marketing programme. Towards the end of the half year we
launched a number of new products in-market, including J2O Spritz and a range of Teisseire products for
mixing with hot drinks and alcohol, as well as water. A&P spend increased by nearly 8% as we invested in
the portfolio and supported the launch of our extensive product innovations.
GB carbonates
Volume (millions litres)
ARP per litre
Revenue
Brand contribution
Brand contribution margin
28 weeks ended
12 April 2015
£m
616.7
46.5p
286.8
113.1
39.4%
28 weeks ended
13 April 2014
£m
616.7
46.1p
284.6
104.8
36.8%
% change
actual
exchange rate
0.0
0.9
0.8
7.9
260bps
Against a strong comparative last year and a competitive market this year, we have delivered a solid
carbonates performance. Whilst volume was stable, an ARP increase of 0.9% resulted in a revenue
increase of 0.8%, primarily due to a positive pack mix. Last year saw significant growth from the 2 litre pack
in the take-home channel and dispense in the leisure retail channel, the ARP and margin on these packs
being lower than the average for overall carbonates. ARP and margin this year have also benefited from the
growth of higher margin single serve packs, such as 600ml. The Pepsi brand also benefited from the
successful introduction of Pepsi Max Cherry. We also invested in a brand refresh of both 7UP and Tango in
the period. Brand contribution increased by 7.9% and margin increased by 260bps, reflecting the impact of
the pack mix.
5
France
Volume (millions litres)
ARP per litre
Revenue
Brand contribution
Brand contribution margin
28 weeks ended
12 April 2015
£m
142.6
83.1p
118.5
34.0
28.7%
28 weeks ended
13 April 2014
£m
141.5
90.0p
127.4
30.3
23.8%
% change
actual
exchange rate
0.8
(7.7)
(7.0)
12.2
490bps
% change
constant
exchange rate
0.8
0.7
1.5
22.3
490bps
In the first half of the year revenue increased by 1.5% as a result of both increased volume and ARP. In
each of the key categories of pure juice, syrups and kids juice drinks we gained market value share. The
revenue mix was particularly margin accretive as branded revenue grew significantly and private label
revenue declined. There was further margin benefit from moving Fruit Shoot production from GB to France
last year, which has resulted in significantly lower distribution costs. Combined with a favourable raw
material environment, this resulted in brand contribution increasing by 22.3%.
Ireland
Volume (millions litres)
ARP per litre
Revenue
Brand contribution
Brand contribution margin
28 weeks ended
12 April 2015
£m
103.0
50.2p
61.7
22.1
35.8%
28 weeks ended
13 April 2014
£m
99.5
53.1p
64.2
21.0
32.7%
% change
actual
exchange rate
3.5
(5.5)
(3.9)
5.2
310bps
% change
constant
exchange rate
3.5
0.8
2.5
13.9
360bps
Note: Volumes and ARP include own-brand soft drinks sales and do not include factored product sales included within total revenue
and brand contribution.
A robust volume increase of 3.5% and an ARP increase of 0.8% led to a strong performance from the
owned-brand business. Following a decline last year we have delivered two successive quarters of volume,
revenue and brand contribution growth. This was partly offset by a decline in the sale of lower margin thirdparty brands in the licensed wholesale channel. As a result the increase in revenue was limited to 2.5%, outperforming the market. Brand contribution increased by 13.9% reflecting the positive mix impact of the
owned-brands versus the third-party wholesale brands and the favourable raw material environment.
International
Volume (millions litres)
ARP per litre
Revenue
Brand contribution
Brand contribution margin
28 weeks ended
12 April 2015
£m
17.8
129.2p
23.0
8.0
34.8%
28 weeks ended
13 April 2014
£m
20.5
132.2p
27.1
10.7
39.5%
% change
actual
exchange rate
(13.2)
(2.3)
(15.1)
(25.2)
(470)bps
% change
constant
exchange rate
(13.2)
1.5
(11.9)
(23.1)
(500)bps
Note: Concentrate sales are included in both revenue and ARP but do not have any associated volume.
Volume declined by 13.2% as a result of the switch from a distributor to a direct serve model in the
Netherlands. This resulted in a one-off revenue adjustment of nearly £3m as stock was repurchased from
the distributor. The move to a direct serve model will unlock growth in the Netherlands and has started to
deliver benefits with over 12,000 additional points of distribution.
Fruit Shoot shipments to the USA remained volatile, in part due to the introduction of a new franchise
compound manufacturing process which has resulted in significantly shorter order lead times. This has
resulted in lower stock requirements for our bottling partners but will deliver improved supply chain
efficiency, which will support our future growth plans. In-market sales continued to grow and Fruit Shoot
market share has increased in all regions.
6
Fixed costs
Non-brand A&P
Fixed supply chain
Selling costs
Overheads and other
Total
Total A&P investment
A&P as a % of own-brand revenue
28 weeks ended
12 April 2015
£m
(5.4)
(49.3)
(64.0)
(71.5)
(190.2)
28 weeks ended
13 April 2014
£m
(5.1)
(54.5)
(65.6)
(65.5)
(190.7)
% change
actual
exchange rate
(5.9)
9.5
2.4
(9.2)
0.3
(35.4)
5.5%
(30.9)
4.7%
(14.6)
(80)bps
Fixed costs, at actual exchange rates, were down this year to £190.2m, a reduction of 0.3% on last year. We
have continued to deliver our strategic cost initiatives as reflected in both brand contribution and in fixed
costs, such as fixed supply chain. The realisation of these cost benefits has enabled further increased
investment in the areas of international, marketing and innovation, which is reflected in overheads and other
costs.
Investment in our brands has again increased, with total A&P investment increasing by 14.6%.
Exceptional and other items
In the period, we accounted for a net charge of £1.3m of pre-tax (£1.1m post tax) exceptional and other
costs. These include:




Corporate exceptional items of £3.3m, relating to the implementation of the strategic cost initiatives
announced at interims in May 2013
Other fair value movements gain of £0.8m. Within exceptional and other items we include the fair
value movement of financial instruments where hedge accounting could not be applied. This was
made up of a number of share swaps and equity forwards to satisfy our employee incentive share
schemes and interest-rate swaps
A gain on held for sale property in Ireland of £0.8m
A gain on disposal of previously impaired assets of £0.4m
The cash associated with exceptional items in the period was an inflow of £0.2m.
Interest
The net finance charge before exceptional and other items for the 28 week period for the group was £12.2m
compared with £13.7m in the same period in the prior year, reflecting the successful refinancing of the bank
facility and lower debt profile of the group.
Taxation
The tax charge before exceptional items was £12.0m which equates to an effective tax rate of 23.5% (28
weeks ended 13 April 2014: 24.9% and 52 weeks ended 28 September 2014: 24.8%). The decrease in the
effective tax rate reflects the reduction in the UK corporation tax rate and the change in profit mix, notably
the improved performance in Ireland.
Earnings per share
Adjusted basic EPS for the period, excluding exceptional and other items and acquisition related
amortisation, was 16.4p, up 11.6% on the same period last year of 14.7p.
Basic EPS (after exceptional and other items charges post-tax) for the period was 15.3p compared with
11.2p for the same period last year.
7
Dividends
The board is recommending an interim dividend of 6.7p per share, an increase of 9.8% on the dividend
declared last year, with a total value of £16.6m. The interim dividend will be paid on 10 July 2015 to
shareholders on record as at 29 May 2015. The ex-dividend date is 28 May 2015.
Cash flow and net debt
Underlying free cash flow was a £31.5m outflow, compared to a £30.8m outflow the previous year. The first
half of the year represents a working capital high for the group due to stock building ahead of the key
summer period and impact of reporting mid-month for the interims. Capital spend was marginally down on
last year due to timing, full year capital spend will be ahead of last year as we invest £25m in a new high
speed production line and additional warehousing at the Leeds factory. Other expenditure increased by
£18.4m primarily due to the purchase of shares to satisfy schemes vesting and the timing of tax payments to
HMRC.
Overall adjusted net debt came down by over £30m and took our leverage to 2.2x EBITDA from 2.6x last
year. The adjusted net debt (taking into account the foreign exchange movements on the derivatives
hedging our US Private Placement debt) at 12 April 2015 was £447.7m, compared to £479.4m at interims
last year.
Treasury management
The financial risks faced by the group are identified and managed by a central treasury department, whose
activities are carried out in accordance with board approved policies and subject to regular audit and
Treasury Committee reviews. The department does not operate as a profit centre and no transaction is
entered into for trading or speculative purposes. Key financial risks managed by the treasury department
include exposures to movements in interest rates and foreign exchange whilst managing the group’s debt
and liquidity, currency risk, interest rate risk and cash management. The group uses financial instruments to
hedge against interest rate and foreign currency exposures.
On 17 December 2014, Britvic plc repaid US$30m (equivalent to £18.0m) of Notes in the United States
private placement market (USPP) using surplus cash available at the time. The 2009 cross currency interest
rate swap instruments which had been designated as part of a fair value hedge relationship against this
maturing portion of the 2009 Notes, also matured on 17 December 2014.
The group has £902m of committed debt facilities consisting of a £400m bank facility which matures in 2019
subject to potential extensions to 2021 and a series of private placement notes with maturities between 2016
and 2026 providing the business with a secure funding platform. At 12 April 2015, the group’s unadjusted
net debt of £541.7m (excluding derivative hedges) consisted of £0.6m drawn under the group’s committed
bank facilities, £596.2m of private placement notes, £4.4m of accrued interest and £0.3m of finance leases,
offset by net cash and cash equivalents of £56.7m and unamortised issue costs of £3.1m. After taking into
account the element of the fair value of interest rate currency swaps hedging the balance sheet value of the
private placement notes, the group’s adjusted net debt was £447.7m which compares to £479.4m at 13 April
2014.
Pensions
At 12 April 2015, the IAS 19 pension surplus in respect of the group defined benefit pension schemes was
£6.5m (28 September 2014: net deficit of £8.4m). The reduction in the deficit was driven by the additional
employer contributions made to the GB plan of £20.0m combined with positive investment performance over
the period, but offset by an increase in the deficit due to changes in the financial assumptions.
The defined benefit section of the GB plan was closed to new members on 1 August 2002, and closed to
future accrual for active members from 1 April 2011, with new members being invited to join the defined
contribution scheme. The 31 March 2013 actuarial valuation of this plan was completed in June 2014
without committing additional employer contributions as the plan’s funding level had improved since the
2010 actuarial valuation.
8
Related parties
In note 32 to Britvic plc’s 2014 Annual Report, the group identified its key management personal (including
directors) and its subsidiaries as related parties for the purpose of IAS 24 ‘Related Party Disclosure’. There
have been no significant changes in those related parties identified at year end and there have been no
transactions with those related parties during the 28 weeks ended 12 April 2015 that have materially
affected, or are expected to materially affect, the financial position or performance of the group during this
period.
Business resources
The main resources the group uses to achieve its results are:

An extensive portfolio of stills and carbonates brands, including Robinsons, Pepsi, 7UP, Tango, J 2O
and Fruit Shoot. The breadth and depth of Britvic's portfolio enables it to target consumer demand
across a wide range of consumption occasions, in all the major soft drinks categories and across all
relevant routes to market. Britvic Ireland owns a number of leading brands in the Republic of Ireland
and Northern Ireland, including Club, Ballygowan and MiWadi as well as the rights to the Pepsi, 7UP
and Mountain Dew brands. In France the portfolio includes the leading syrup brand Teisseire as well
as Moulin de Valdonne, Pressade and Fruit Shoot.

A successful long-standing relationship with PepsiCo that resulted in the exclusive bottling
agreement (EBA) being renewed in GB in 2003 for a further 15 years, with an extension to 2023 on
admission to the London Stock Exchange. The EBA for Ireland lasts until 2015, discussions are
ongoing to renew this agreement. This relationship gives Britvic the exclusive right to distribute the
Pepsi and 7UP brands in GB and Ireland, access to all new carbonated drinks developed by
PepsiCo for distribution in GB and Ireland and, to support the development of its carbonates
offering, access to PepsiCo's consumer insight, marketing best practice, brand and product
development expertise and technological know-how. Britvic has added to its portfolio with Mountain
Dew Energy in GB and Ireland and has also been appointed in recent years as the exclusive GB
bottler of Gatorade, Lipton Ice Tea and SoBe.

A strong customer base. For example, in the GB take-home market, Britvic's customers include the
"Big 4" supermarkets (Tesco, J Sainsbury’s, Asda and Wm Morrisons) together with a number of
other important grocery retailers. The group has significant supply arrangements with a number of
key players in the GB pubs and clubs sector and leisure and catering channels. Through Britvic
International, the group has built on the success of the Robinsons and Fruit Shoot brands by
introducing these products into markets outside GB.

Britvic also has a well-invested and flexible group production capability and distribution network that
enables its soft drinks to be made available to consumers across all of its operating territories.
Risk management process
Britvic operates a robust risk management process that has been further strengthened over recent years.
Risk identification, analysis and mitigation planning is undertaken at all levels of the business through
functional and operational teams. Each risk is assigned an owner at management level who has
responsibility for ensuring that appropriate actions are taken to manage the risk. A dedicated Risk and
Insurance Manager manages and supports this process and owns the group-wide risk register.
Risks are regularly reviewed and monitored by Business Unit or functional management teams. The
executive team review the major risks across the group on a quarterly basis to ensure that the management
of these risks has appropriate focus. The board review these at least twice a year.
The principal risks that could potentially have a significant impact on our business in the future are set out on
page 28 of the 2014 annual report and there have been no significant changes to these risks since then. The
annual report can be downloaded at www.britvic.com
John Gibney
Chief Financial Officer
9
BRITVIC PLC
INTERIM FINANCIAL STATEMENTS
FOR THE 28 WEEKS ENDED 12 APRIL 2015
Company number: 5604923
RESPONSIBILITY AND CAUTIONARY STATEMENTS
RESPONSIBILITY STATEMENTS
The directors confirm that to the best of their knowledge, this unaudited condensed set of consolidated interim financial statements has
been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union, and that the interim
management report herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.
CAUTIONARY STATEMENT
This report is addressed to the shareholders of Britvic plc and has been prepared solely to provide information to them.
This report is intended to inform the shareholders of the group’s performance during the 28 weeks to 12 April 2015. This report contains
forward-looking statements based on knowledge and information available to the directors at the date the report was prepared. These
statements should be treated with caution due to the inherent uncertainties underlying any such forward-looking information and any
statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially
different.
DIRECTORS
The directors of Britvic plc are:
Gerald Corbett
Simon Litherland
John Gibney
Joanne Averiss
Ben Gordon
Bob Ivell
Ian McHoul
Silvia Lagnado
John Daly
By order of the board
Simon Litherland
Chief Executive Officer
John Gibney
Chief Financial Officer
Date: 19 May 2015
1
BRITVIC PLC
INDEPENDENT REVIEW REPORT TO BRITVIC PLC
Introduction
We have been engaged by Britvic plc (the ‘company’) to review the condensed set of financial statements in the half-yearly financial
report for the 28 weeks ended 12 April 2015 which comprises the consolidated income statement, consolidated statement of
comprehensive income/(expense), consolidated balance sheet, consolidated statement of cash flows, consolidated statement of
changes in equity and the related notes 1 to 17. We have read the other information contained in the half yearly financial report and
considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for
preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial
report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the
half-yearly financial report for the 28 weeks ended 12 April 2015 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Ernst & Young LLP
Birmingham
Date: 19 May 2015
2
BRITVIC PLC
CONSOLIDATED INCOME STATEMENT
For the 28 weeks ended 12 April 2015
28 weeks
ended 12 April 2015
(unaudited)
28 weeks
ended 13 April 2014
(unaudited)
52 weeks
ended 28 September 2014
(audited)
Before
exceptional
& other items
Exceptional
& other
items*
Total
Before
exceptional
& other items
Exceptional
& other
items*
Total
Before
exceptional
& other items
Exceptional
& other
items*
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
650.3
-
650.3
670.7
-
670.7
1,344.4
-
1,344.4
Cost of sales
(294.3)
-
(294.3)
(320.9)
-
(320.9)
(617.5)
-
(617.5)
Gross profit
356.0
-
356.0
349.8
-
349.8
726.9
-
726.9
Note
Revenue
6
Selling and distribution costs
(186.0)
-
(186.0)
(194.4)
-
(194.4)
(370.4)
-
(370.4)
Administration expenses
(106.8)
(1.9)
(108.7)
(96.4)
(8.7)
(105.1)
(198.4)
(12.8)
(211.2)
Operating profit/(loss)
Finance costs
Profit/(loss) before tax
Taxation
8
Profit/(loss) for the period
attributable to the equity
shareholders
63.2
(1.9)
61.3
59.0
(8.7)
50.3
158.1
(12.8)
145.3
(12.2)
0.6
(11.6)
(13.7)
0.5
(13.2)
(25.2)
-
(25.2)
51.0
(1.3)
49.7
45.3
(8.2)
37.1
132.9
(12.8)
120.1
(12.0)
0.2
(11.8)
(11.3)
1.7
(9.6)
(33.0)
2.6
(30.4)
39.0
(1.1)
37.9
34.0
(6.5)
27.5
99.9
(10.2)
89.7
Earnings per share
Basic earnings per share
9
15.3p
11.2p
36.5p
Diluted earnings per share
9
15.3p
11.2p
36.2p
Adjusted basic earnings per
share**
9
16.4p
14.5p
41.8p
Adjusted diluted earnings
per share**
9
16.3p
14.4p
41.5p
*
See note 7.
** Adjusted basic and diluted earnings per share measures have been adjusted by adding back exceptional and other items (see note 7) and
amortisation of acquisition related intangible assets. This reconciliation is shown in note 9.
All activities relate to continuing operations.
3
BRITVIC PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(EXPENSE)
For the 28 weeks ended 12 April 2015
Note
Profit for the period attributable to the equity shareholders
28 weeks ended
28 weeks ended
52 weeks ended
12 April 2015
13 April 2014
28 September 2014
(unaudited)
(unaudited)
(audited)
£m
£m
£m
37.9
27.5
89.7
Other comprehensive income:
Items that will not be reclassified to profit or loss
Remeasurement (losses)/gains on defined benefit pension schemes
(6.4)
1.0
(12.3)
Deferred tax on defined benefit pension schemes
(1.1)
(4.1)
(2.0)
Current tax on additional pension contributions
3.1
4.1
4.5
(4.4)
1.0
(9.8)
Items that may be subsequently reclassified to profit or loss
Gains/(losses) in the period in respect of cash flow hedges
14
34.2
(23.2)
(11.9)
Amounts recycled to the income statement in respect of cash flow hedges
14
(34.0)
21.5
10.5
(0.3)
0.3
0.1
(0.8)
(0.8)
(3.9)
(0.7)
0.9
0.7
Deferred tax in respect of cash flow hedges accounted for in the hedging reserve
Exchange differences on translation of foreign operations
Tax on exchange differences accounted for in the translation reserve
Deferred tax on other temporary differences
14
-
-
0.1
(1.6)
(1.3)
(4.4)
Other comprehensive expense for the period net of tax
(6.0)
(0.3)
(14.2)
Total comprehensive income for the period attributable to the equity
shareholders
31.9
27.2
75.5
4
BRITVIC PLC
CONSOLIDATED BALANCE SHEET
As at 12 April 2015
Note
Assets
Non-current assets
Property, plant and equipment
Intangible assets
Other receivables
Other financial assets
Pension asset
Current assets
Inventories
Trade and other receivables
Other financial assets
Cash and cash equivalents
10
10
14
16
14
Non-current assets held for sale
Total assets
Current liabilities
Trade and other payables
Bank overdrafts
Interest-bearing loans and borrowings
Other financial liabilities
Current income tax payable
Provisions
Other current liabilities
Non-current liabilities
Interest-bearing loans and borrowings
Deferred tax liabilities
Pension liability
Other financial liabilities
Provisions
Other non-current liabilities
11
14
11
16
14
Total liabilities
Net assets
Capital and reserves
Issued share capital
Share premium account
Own shares reserve
Hedging reserve
Translation reserve
Merger reserve
Retained losses
Total equity
12
12 April 2015
(unaudited)
£m
13 April 2014
(unaudited)
£m
28 September 2014
(audited)
£m
213.8
281.3
2.9
125.9
14.0
637.9
211.9
313.7
4.2
50.3
7.8
587.9
221.0
299.7
3.0
64.6
588.3
91.9
285.2
3.5
56.7
437.3
0.8
1,076.0
87.8
296.8
3.3
44.4
432.3
1,020.2
84.7
276.9
4.5
144.0
510.1
3.6
1,102.0
(345.0)
(3.9)
(4.1)
(22.8)
(2.9)
(378.7)
(349.6)
(0.5)
(21.8)
(1.4)
(15.8)
(7.2)
(0.4)
(396.7)
(379.7)
(0.7)
(22.4)
(1.6)
(25.4)
(4.1)
(0.4)
(434.3)
(594.5)
(20.2)
(7.5)
(0.1)
(1.3)
(1.5)
(625.1)
(1,003.8)
72.2
(527.0)
(28.2)
(4.5)
(17.0)
(1.5)
(578.2)
(974.9)
45.3
(539.9)
(23.3)
(8.4)
(9.9)
(1.6)
(1.5)
(584.6)
(1,018.9)
83.1
49.6
37.7
(12.1)
1.3
14.9
87.3
(106.5)
72.2
49.4
33.5
(3.7)
1.3
19.7
87.3
(142.2)
45.3
49.4
33.5
(2.9)
1.4
16.4
87.3
(102.0)
83.1
5
BRITVIC PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the 28 weeks ended 12 April 2015
28 weeks ended
12 April 2015
(unaudited)
£m
28 weeks ended
13 April 2014
(unaudited)
£m
52 weeks ended
28 September 2014
(audited)
£m
Profit before tax
49.7
37.1
120.1
Finance costs
11.6
13.2
25.2
Other financial instruments
(0.2)
(1.5)
(1.3)
0.1
-
0.6
Depreciation
16.3
17.9
31.5
Amortisation
5.8
4.6
10.4
Share-based payments
5.8
4.5
9.1
Net pension charge less contributions
(20.8)
(22.0)
(22.9)
(Increase)/decrease in inventory
(10.2)
2.6
3.1
Increase in trade and other receivables
(14.1)
(31.9)
(15.8)
(Decrease)/increase in trade and other payables
Note
Cash flows from operating activities
Impairment of property, plant and equipment and intangible assets
(17.6)
(26.7)
10.5
Decrease in provisions
(1.3)
(3.3)
(4.8)
(Profit)/loss on disposal of tangible and intangible assets
(0.7)
1.1
1.1
(16.2)
(8.3)
(20.2)
8.2
(12.7)
146.6
4.0
-
0.7
(19.5)
(19.8)
(49.2)
(3.0)
(3.6)
(8.8)
(18.5)
(23.4)
(57.3)
Income tax paid
Net cash flows from operating activities
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Net cash flows used in investing activities
Cash flows from financing activities
Interest paid
(11.2)
(12.5)
(24.2)
Interest-bearing loans (repaid)/drawn down
11
(0.7)
(0.1)
0.2
Repayment of 2009 USPP Notes
11
(18.0)
-
-
Repayment of 2007 USPP Notes
11
-
(76.8)
(76.8)
Issue of 2014 USPP Notes
11
-
105.8
105.8
(2.2)
(0.4)
(0.4)
3.0
4.3
4.9
(10.6)
-
-
(36.4)
(31.8)
(46.8)
Net cash flows used in financing activities
(76.1)
(11.5)
(37.3)
Net (decrease)/increase in cash and cash equivalents
(86.4)
(47.6)
52.0
Cash and cash equivalents at beginning of period
Issue costs paid
Issue of shares
Purchase of own shares
Dividends paid to equity shareholders
13
143.3
91.5
91.5
Exchange rate differences
(0.2)
-
(0.2)
Cash and cash equivalents at the end of the period
56.7
43.9
143.3
56.7
44.4
144.0
-
(0.5)
(0.7)
56.7
43.9
143.3
By balance sheet category:
Cash and cash equivalents
Bank overdrafts
6
BRITVIC PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 28 weeks ended 12 April 2015
At 28 September 2014 (audited)
Issued
share
capital
Share
premium
account
Own
shares
reserve
£m
£m
£m
Hedging
reserve
Translation
reserve
Merger
reserve
Retained
losses*
Total
£m
£m
£m
£m
£m
83.1
49.4
33.5
(2.9)
1.4
16.4
87.3
(102.0)
Profit for the period
-
-
-
-
-
-
37.9
37.9
Other comprehensive expense
-
-
-
(0.1)
(1.5)
-
(4.4)
(6.0)
31.9
Total comprehensive income/(expense)
-
-
-
(0.1)
(1.5)
-
33.5
0.2
4.2
(2.1)
-
-
-
-
2.3
Own shares purchased for share schemes
-
-
(13.4)
-
-
-
-
(13.4)
Own shares utilised for share schemes
-
-
6.3
-
-
-
(5.6)
0.7
Movement in share-based schemes
-
-
-
-
-
-
4.5
4.5
Current tax on share-based payments
-
-
-
-
-
-
0.2
0.2
Deferred tax on share-based payments
-
-
-
-
-
-
(0.7)
(0.7)
Issue of shares
Payment of dividend
At 12 April 2015 (unaudited)
At 29 September 2013 (audited)
-
-
-
-
-
-
(36.4)
(36.4)
49.6
37.7
(12.1)
1.3
14.9
87.3
(106.5)
72.2
Issued
share
capital
Share
premium
account
Own
shares
reserve
Hedging
reserve
Translation
reserve
Merger
reserve
Retained
losses*
Total
£m
£m
£m
£m
£m
£m
£m
£m
40.9
49.0
25.0
(1.1)
2.7
19.6
87.3
(141.6)
Profit for the period
-
-
-
-
-
-
27.5
27.5
Other comprehensive income
-
-
-
(1.4)
0.1
-
1.0
(0.3)
Total comprehensive income
-
-
-
(1.4)
0.1
-
28.5
27.2
Issue of shares
0.4
8.5
(5.4)
-
-
-
-
3.5
Own shares utilised for share schemes
-
-
2.8
-
-
-
(2.0)
0.8
Movement in share-based schemes
-
-
-
-
-
-
3.8
3.8
Current tax on share-based payments
-
-
-
-
-
-
0.4
0.4
Deferred tax on share-based payments
-
-
-
-
-
-
0.5
0.5
Payment of dividend
At 13 April 2014 (unaudited)
-
-
-
-
-
-
(31.8)
(31.8)
49.4
33.5
(3.7)
1.3
19.7
87.3
(142.2)
45.3
* The retained losses balance has been amalgamated with the share scheme reserve in the consolidated statement of changes in
equity and the consolidated balance sheet.
7
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
1.
General Information
Britvic plc (the ‘company’, the ‘group’) is a public limited company, incorporated and domiciled in the United Kingdom. The address of
the registered office is: Britvic plc, Breakspear Park, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4TZ.
The company is listed on the London Stock Exchange.
These interim financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. They
have been reviewed but not audited by the group’s auditor. The statutory accounts for Britvic plc for the 52 weeks ended 28 September
2014, which were prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union, have been
delivered to the Registrar of Companies. The auditor’s opinion on those accounts was unqualified and did not contain a statement
made under section 498 (2) or (3) of the Companies Act 2006.
The interim financial statements were authorised for issue by the board of directors on 19 May 2015.
2.
Basis of preparation
These interim financial statements comprise the consolidated balance sheet as at 12 April 2015 and related consolidated income
statement, consolidated statement of cash flows, consolidated statement of comprehensive income/(expense), consolidated statement
of changes in equity and the related notes 1 to 17 for the 28 weeks then ended of Britvic plc (‘financial information’). This financial
information has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with
the International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’ as adopted by the European Union.
3.
Going concern
The directors are confident that it is appropriate for the going concern basis to be adopted in preparing the interim report and financial
statements. As at 12 April 2015, the consolidated balance sheet reflects a net assets position of £72.2m. The liquidity of the group
remains strong supported by £502.2m of long term private placement notes with maturity dates between 2017 and 2026. In addition,
agreement was reached in November 2014 to refinance the group’s £400.0m bank facility with revised maturity date of November 2019.
Details are provided in the group’s 2014 annual report.
Group reserves are low due to the capital restructuring undertaken at the time of flotation. This does not impact on Britvic plc’s ability to
meet payments as they fall due or to make dividend payments.
4.
Accounting policies
This financial information has been prepared using the accounting policies as set out in pages 86 - 94 of the group’s 2014 annual
report.
During the period, the group adopted a number of interpretations and amendments to standards which had an immaterial impact on the
consolidated financial statements of the group.
8
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
5.
Seasonality of operations
Due to the seasonal nature of the business, higher revenues and operating profits are usually expected in the second half of the year
than in the first 28 weeks.
6.
Segmental reporting
For management purposes, the group is organised into business units and has five reportable segments as follows:





GB Stills – United Kingdom excluding Northern Ireland
GB Carbs – United Kingdom excluding Northern Ireland
Ireland – including Northern Ireland
France
International
These business units sell soft drinks into their respective markets.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on brand contribution. This is defined as revenue
less material costs and all other marginal costs that management considers to be directly attributable to the sale of a given product.
Such costs include brand specific advertising and promotion costs, raw materials and marginal production and distribution costs.
However, group financing (including finance costs) and income taxes are managed on a group basis and are not allocated to reportable
segments.
Transfer prices between reportable segments are on an arm’s length basis in a manner similar to transactions with third parties.
28 weeks ended 12 April 2015
Revenue
Brand contribution
GB Stills
£m
GB Carbs
£m
Total GB
£m
Ireland
£m
France
£m
International
£m
Total
£m
160.3
286.8
447.1
61.7
118.5
23.0
650.3
76.2
113.1
189.3
22.1
34.0
8.0
253.4
Non-brand advertising & promotion *
(5.4)
Fixed supply chain**
(49.3)
Selling costs**
(64.0)
Overheads and other costs*
(71.5)
Operating profit before exceptional
and other items
63.2
Finance costs
(12.2)
Exceptional and other items
(1.3)
Profit before tax
49.7
9
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
6.
Segmental reporting (continued)
28 weeks ended 13 April 2014
Revenue
Brand contribution
GB Stills
£m
GB Carbs
£m
Total GB
£m
Ireland
£m
France
£m
International
£m
Total
£m
167.4
284.6
452.0
64.2
127.4
27.1
670.7
82.9
104.8
187.7
21.0
30.3
10.7
249.7
Non-brand advertising & promotion *
(5.1)
Fixed supply chain**
(54.5)
Selling costs**
(65.6)
Overheads and other costs*
(65.5)
Operating profit before exceptional
and other items
59.0
Finance costs
(13.7)
Exceptional and other items
(8.2)
Profit before tax
37.1
52 weeks ended 28 September 2014
GB Stills
£m
GB Carbs
£m
Total GB
£m
Ireland
£m
France
£m
International
£m
Total
£m
Revenue
335.2
567.8
903.0
128.3
254.9
58.2
1,344.4
Brand contribution
159.4
222.4
381.8
47.0
67.1
21.0
516.9
Non-brand advertising & promotion *
(9.9)
Fixed supply chain **
(101.8)
Selling costs **
(120.7)
Overheads and other costs *
(126.4)
Operating profit before exceptional
and other items
158.1
Finance costs
(25.2)
Exceptional and other items
(12.8)
Profit before tax
120.1
*
Included within ‘Administration expenses’ in the consolidated income statement. ‘Overheads and other costs’ relate to central
expenses including salaries, IT maintenance, depreciation and amortisation.
**
Included within ‘Selling and distribution costs’ in the consolidated income statement.
10
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
7.
Exceptional and other items
Exceptional and other items are those items of financial performance that management believe should be separately disclosed by virtue
of the nature and infrequency of the events giving rise to them to allow shareholders to understand better the elements of financial
performance in the period so as to facilitate comparison with prior periods and to assess trends in financial performance more readily.
Unless otherwise stated, exceptional and other items are included within administration expenses in the consolidated income
statement.
Note
Asset impairments
28 weeks ended
12 April 2015
£m
28 weeks ended
13 April 2014
£m
52 weeks ended
28 September 2014
£m
-
-
(0.7)
Gain on disposal of previously impaired assets
(a)
0.4
-
0.7
Gain on held for sale property in Britvic Ireland
0.8
-
-
Strategic restructuring costs
(b)
(3.3)
(10.2)
(14.1)
Other fair value movements
(c)
0.8
2.0
2.3
Write off of unamortised financing fees
(d)
Total exceptional and other items before tax
-
-
(1.0)
(1.3)
(8.2)
(12.8)
a)
Asset impairments in 2014 related to the loss recognised on transfer of a property from property, plant and equipment to held for
sale in Britvic GB following closure as part of strategic cost initiatives announced in May 2013.
b)
Strategic restructuring costs in 2014 and 2015 relate to continued implementation of cost initiatives announced in May 2013,
including costs associated with the closure of two factories and subsequent reorganisation as well as integration of GB and Ireland
back office operations. These costs are expected to cease during the current financial year.
c)
Other fair value movements relate to the fair value movement of derivative financial instruments where hedge accounting cannot
be applied. For the 28 weeks ended 12 April 2015, a £0.2m gain is included within administration expenses (28 weeks ended 13
April 2014: £1.5m gain) and a £0.6m gain is included within finance costs (28 weeks ended 13 April 2014: £0.5m) in the
consolidated income statement.
d)
In 2014, following the decision to refinance the group’s committed bank facility, unamortised financing fees of £1.0m were written
off to finance costs in the consolidated income statement.
Details of the tax implications of exceptional items are given in note 8.
8.
Taxation
The tax charge not including tax on exceptional and other items is £12.0m (28 weeks ended 13 April 2014: £11.3m) which equates to
an effective tax rate 23.5% (28 weeks ended 13 April 2014: 24.9%).
Included in the total tax charge for the 28 weeks ended 12 April 2015 is a tax credit on exceptional and other items of £0.2m (28 weeks
ended 13 April 2014: £1.7m credit).
Tax charge by region
UK
Foreign
Total tax charge in the consolidated income statement
28 weeks ended
12 April 2015
£m
10.4
1.4
11.8
28 weeks ended
13 April 2014
£m
10.5
(0.9)
9.6
52 weeks ended
28 September 2014
£m
30.1
0.3
30.4
28 weeks ended
12 April 2015
£m
14.5
(2.7)
11.8
28 weeks ended
13 April 2014
£m
12.6
(3.0)
9.6
52 weeks ended
28 September 2014
£m
34.5
(4.1)
30.4
Analysis of tax charge
Current income tax charge
Deferred income tax credit
Total tax charge in the consolidated income statement
11
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
9.
Earnings per share
Basic earnings per share amounts are calculated by dividing the net profit for the period attributable to the equity shareholders of the
parent by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to the equity shareholders of the parent by the
weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that
would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following table reflects the income and share data used in the basic and diluted earnings per share computations:
28 weeks ended
12 April 2015
£m
28 weeks ended
13 April 2014
£m
52 weeks ended
28 September 2014
£m
37.9
27.5
89.7
Basic earnings per share
Profit for the period attributable to the equity shareholders
Weighted average number of ordinary shares in issue for
basic earnings per share
Basic earnings per share
247.3
245.6
245.8
15.3p
11.2p
36.5p
Diluted earnings per share
Profit for the period attributable to the equity shareholders
37.9
27.5
89.7
Weighted average number of ordinary shares in issue for
diluted earnings per share
248.5
246.1
247.5
Diluted earnings per share
15.3p
11.2p
36.2p
The group presents as exceptional and other items on the face of the consolidated income statement, those significant items of income
and expense which, because of the nature and infrequency of the events giving rise to them, merit separate presentation to allow
shareholders to understand better the elements of financial performance in the period, so as to facilitate comparison with prior periods
and to assess trends in financial performance more readily.
To this end, basic and diluted earnings per share are also presented on this basis with the amortisation of acquisition related intangible
assets also added back using the weighted average number of ordinary shares for both basic and diluted amounts as per the tables
below.
Adjusted basic earnings per share
Profit for the period attributable to equity shareholders
Add: Net impact of exceptional and other items
Add: Intangible assets amortisation (acquisition related)
Weighted average number of ordinary shares in issue for
adjusted basic earnings per share
Adjusted basic earnings per share
Adjusted diluted earnings per share
Profit for the period attributable to equity shareholders before
exceptional and other items and acquisition related intangible
assets amortisation
Weighted average number of ordinary shares in issue for
adjusted diluted earnings per share
Adjusted diluted earnings per share
28 weeks ended
12 April 2015
£m
28 weeks ended
13 April 2014
£m
52 weeks ended
28 September 2014
£m
37.9
1.1
1.5
40.5
27.5
6.5
1.5
35.5
89.7
10.2
2.9
102.8
247.3
245.6
245.8
16.4p
14.5p
41.8p
40.5
35.5
102.8
248.5
246.1
247.5
16.3p
14.4p
41.5p
12
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
10.
Property, plant and equipment and Intangible assets
During the 28 weeks ended 12 April 2015, the group purchased property, plant and equipment with a cost of £15.1m (28 weeks ended
13 April 2014: £15.7m), and intangible assets with a cost of £2.9m (28 weeks ended 13 April 2014: £3.6m).
During the 52 weeks ended 28 September 2014, properties in Britvic Ireland and GB were transferred to non-current assets held for
sale with net book values of £2.8m and £0.8m respectively. The sale of the Britvic Ireland property completed on 2 October 2014 and
resulted in a gain on disposal of £0.8m.
In addition, other assets with a net book value of £0.5m were disposed of by the group during the 28 weeks ended 12 April 2015 (28
weeks ended 13 April 2014: £1.1m) resulting in a loss on disposal of £0.1m (28 weeks ended 13 April 2014: loss on disposal £1.1m).
11.
Interest-bearing loans and borrowings
Components of current and non-current interest-bearing loans and borrowings:
Finance leases
2007 Notes
2009 Notes
2010 Notes
2014 Notes
Accrued interest
Bank loans
Capitalised issue costs
Total interest-bearing loans and borrowings
Current
12 April 2015
£m
(0.3)
(199.5)
(159.5)
(124.3)
(112.9)
(4.4)
(0.6)
3.1
(598.4)
13 April 2014
£m
(0.4)
(176.1)
(157.7)
(108.8)
(103.1)
(4.6)
(0.8)
2.7
(548.8)
28 September 2014
£m
(0.3)
(180.9)
(160.5)
(111.7)
(105.2)
(3.6)
(1.4)
1.3
(562.3)
(3.9)
(21.8)
(22.4)
Non-current
(594.5)
(527.0)
(539.9)
Total interest-bearing loans and borrowings
(598.4)
(548.8)
(562.3)
28 weeks ended
12 April 2015
£m
(562.3)
0.7
18.0
2.2
(0.3)
(55.9)
(0.8)
(598.4)
94.0
(504.4)
28 weeks ended
13 April 2014
£m
(549.9)
0.1
76.8
(105.8)
0.4
0.1
(0.5)
30.7
(0.7)
(548.8)
25.5
(523.3)
52 weeks ended
28 September 2014
£m
(549.9)
(0.4)
76.8
(105.8)
0.4
0.2
(1.9)
18.0
0.3
(562.3)
38.1
(524.2)
Analysis of changes in interest-bearing loans and borrowings:
At the beginning of the period
Net loans repaid/(drawn down)
Partial repayment of 2009 Notes
Partial repayment of 2007 Notes
Issue of 2014 Notes
Issue costs
Repayment of finance leases
Amortisation and write off of issue costs
Net translation (loss)/gain and fair value adjustment
Net movement in accrued interest
At the end of the period
Derivatives hedging balance sheet debt*
Debt translated at contracted rate
*
Represents the element of the fair value of interest rate currency swaps hedging the balance sheet value of the notes. This amount has been
disclosed separately to demonstrate the impact of foreign exchange movements which are included in interest bearing loans and borrowings.
Partial repayment of 2009 Notes
On 17 December 2014, in line with the maturity profile of the 2009 Notes, Britvic plc repaid US$30m (equivalent to £18.0m) in the
United States private placement market (USPP).
13
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
12.
Issued share capital
The issued share capital is wholly comprised of ordinary shares carrying one voting right each. The nominal value of each ordinary
share is £0.20. There are no restrictions placed on the distribution of dividends, or the return of capital on a winding up or otherwise.
Issued, called up and fully paid ordinary shares
At 29 September 2013
Shares issued
At 28 September 2014
Shares issued
At 12 April 2015
No. of shares
Value
£
245,091,028
49,018,205
2,138,087
427,618
247,229,115
49,445,823
1,024,505
204,901
248,253,620
49,650,724
Of the issued and fully paid ordinary shares, 1,623,229 shares (28 September 2014: 409,725 shares) are own shares held by an
employee benefit trust. This equates to £324,646 (28 September 2014: £81,945) at £0.20 par value of each ordinary share. These
shares are held for the purpose of satisfying the share schemes.
13.
Dividends paid and proposed
28 weeks ended
12 April 2015
28 weeks ended
13 April 2014
52 weeks ended
28 September 2014
Dividends per share (pence)
14.8
13.0
19.1
Total dividend (£m)
36.4
31.8
46.8
6.7
6.1
14.8
16.6
15.0
36.3
Declared and paid in the period
Proposed after the balance sheet date
Dividend per share (pence)
Total dividend (£m)
14
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
14.
Derivatives and hedge relationships
The group has a number of derivative contracts which are designated as part of effective hedge relationships. These are included in
other financial assets and liabilities as follows:
12 April 2015
£m
13 April 2014
£m
28 September 2014
£m
Fair value of USD GBP cross currency fixed interest rate swaps ¹
60.4
30.1
34.4
Fair value of GBP euro cross currency floating interest rate swaps ²
28.7
7.5
15.1
Fair value of USD GBP cross currency floating interest rate swaps ³
36.8
12.7
15.1
125.9
50.3
64.6
Consolidated balance sheet
Non-current assets: Other financial assets
Current assets: Other financial assets
Fair value of USD GBP cross currency floating interest rate swaps ³
-
0.4
0.7
Fair value of forward currency contracts¹
3.3
0.1
1.2
Fair value of foreign exchange swaps
0.2
-
-
-
2.8
2.6
3.5
3.3
4.5
Fair value of forward currency contracts¹
(2.7)
(1.3)
(1.5)
Fair value of foreign exchange swaps
(0.2)
(0.1)
(0.1)
Fair value of interest rate swaps
(1.2)
-
-
(4.1)
(1.4)
(1.6)
Fair value of USD GBP cross currency fixed interest rate swaps ¹
-
(10.8)
(7.0)
2
-
(2.0)
(0.2)
-
(1.9)
(0.9)
(0.1)
-
-
-
(2.3)
(1.8)
(0.1)
(17.0)
(9.9)
Fair value of share swaps
Current liabilities: Other financial liabilities
Non-current liabilities: Other financial liabilities
Fair value of GBP euro cross currency fixed interest rate swaps
Fair value of USD GBP cross currency floating interest rate swaps
Fair value of equity forwards
Fair value of interest rate swaps
3
¹ Instruments designated as part of a cash flow hedge relationship
² Instruments designated as part of a net investment hedge relationship
³ Instruments designated as part of a fair value hedge relationship
Changes to derivative contracts
Other than as described below, there have been no significant changes to derivative contracts designated as part of effective hedge
relationships in the period. The derivatives and the hedge relationships are described in more detail on pages 124 to 127 in the group’s
annual report for the 52 weeks ended 28 September 2014.
2009 Notes/2009 cross currency interest rate swaps
On 17 December 2014, in line with the maturity profile of the 2009 Notes, Britvic plc repaid US$30m (equivalent to £18.0m) in the
United States private placement market (USPP). The 2009 cross currency interest rate swap instruments which had been designated
as part of a fair value hedge relationship against this maturing portion of the 2009 Notes, also matured on 17 December 2014.
15
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
14.
Derivatives and hedge relationships (continued)
Impact of derivatives and hedge relationships on the consolidated statement of comprehensive income/(expense)
28 weeks ended
12 April 2015
£m
28 weeks ended
13 April 2014
£m
52 weeks ended
28 September 2014
£m
(0.3)
(33.7)
(34.0)
(1.0)
22.5
21.5
(3.2)
13.7
10.5
1.2
33.0
34.2
0.9
(24.1)
(23.2)
4.1
(16.0)
(11.9)
13.8
(14.6)
(0.8)
1.7
(2.5)
(0.8)
11.1
(15.0)
(3.9)
Consolidated statement of comprehensive income/(expense)
Amounts recycled to the income statement in respect of cash flow hedges
Forward currency contracts*
Cross currency interest rate swaps**
Gains/(losses) in the period in respect of cash flow hedges
Forward currency contracts
Cross currency interest rate swaps
Exchange differences on translation of foreign operations
Movement on cross currency interest rate swaps
Exchange movements on translation of foreign operations
* Offsetting amounts recorded in cost of sales
** Offsetting amounts recorded in finance costs
15.
Fair value
Hierarchy
The group uses the following valuation hierarchy to determine the carrying value of financial instruments that are measured at fair
value:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market
data.
12 April 2015
Level 1
Level 2 - Derivatives used for hedging
- Financial instruments at fair value through profit or loss
- Fair value of fixed rate borrowings
Level 3
Total
Assets
£m
129.2
0.2
-
Liabilities
£m
(2.7)
(1.5)
(636.5)
-
129.4
(640.7)
16
BRITVIC PLC
NOTES TO THE FINANCIAL INFORMATION
For the 28 weeks ended 12 April 2015
15.
Fair value (continued)
Fair values of financial assets and financial liabilities
The most frequently applied valuation techniques include using present value calculations of forward pricing and swap models.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market,
do not qualify as trading assets and have not been designated as either fair value through profit or loss or available for sale. Nonderivative financial liabilities are carried at amortised cost.
All derivatives are valued using valuation techniques with market observable inputs; this covers cross currency interest rate swaps,
interest rate swaps, FX forwards, FX swaps and share swaps. The most frequently applied valuation techniques include forward pricing
and swap models using present value calculations. In assessing the fair value of derivatives the non-performance risk of both Britvic
and its derivative trading counterparties has been taken into consideration. Default credit risk has been measured and the potential
impact on derivatives valuations quantified. As at 12 April 2015, the potential impact from non-performance risk on the fair value of the
derivatives portfolio is not material.
As in the prior year, the carrying value of financial assets and liabilities (trade and other receivables, cash and cash equivalents, interest
bearing loans and borrowings, trade and other payables and derivatives) are considered to be reasonable approximations of their fair
values, except for fixed rate borrowings which, at 12 April 2015, have a book value of £598.1m (28 September 2014: £562.0m)
compared to a fair value £636.5m (28 September 2014: £584.5m).
The fair value of the group’s fixed rate interest-bearing borrowings and loans are determined by using discounted cash flow methods
using discount rates that reflect the group’s borrowing rate as at the end of the reporting period. The own non-performance risk as at 12
April 2015 was assessed to be insignificant.
16.
Pensions
At 12 April 2015, Britvic plc has IAS 19 pension surpluses in GB and NI totalling £14.0m and IAS 19 pension deficits in ROI and France
totalling £7.5m resulting in a net pension surplus of £6.5m (28 September 2014: net deficit of £8.4m). The net position has improved
primarily due to additional employer contributions made to the GB plan of £20.0m combined with positive investment performance over
the period, offset by an increase in the deficit due to changes in the financial assumptions.
The defined benefit section of the GB plan was closed to new members on 1 August 2002, and closed to future accrual for active
members from 1 April 2011, with new members being invited to join the defined contribution scheme. The 31 March 2013 actuarial
valuation of this plan was completed in June 2014 without committing additional employer contributions as the plan’s funding level had
improved since the 2010 actuarial valuation.
17.
Capital commitments
At 12 April 2015, the group has commitments of £15.6m (28 September 2014: £3.6m) relating to the acquisition of new plant and
machinery, which primarily relates to a new PET line in GB.
17